When you sell shares or close positions, the funds from these transactions go through a settlement process before they become available for withdrawal. Here’s a detailed explanation:

Settlement Process:

• Unsettled Amount: When shares are sold or positions are closed, the resulting funds are initially classified as "unsettled." This means they are not immediately available for withdrawal.
• Settlement Period: The unsettled amount is transitioned to a settled status according to the settlement cycle of the transaction:
• T+1 Day: Some transactions may settle the next trading day.
• T+2 Days: Most equity transactions settle two trading days after the trade date.

Key Points:

1. Unsettled Amount:
• Funds from sold shares or closed positions are initially parked as unsettled amounts.
• These funds cannot be withdrawn until they are settled.
2. Settlement Cycle:
• T+1 Day: Funds from certain transactions may settle by the next trading day.
• T+2 Days: Standard equity transactions typically settle within two trading days.
3. Withdrawal Availability:
• Once the funds transition from unsettled to settled status, they become available for withdrawal.
4. Tracking Unsettled Credits:
• You can monitor your unsettled credits under the 'Breakdown' view of the 'Available Withdrawable Balance' in your 5paisa account.

Example Scenario:

• Selling Shares on Monday: If you sell shares on Monday:
• The funds will be parked as unsettled.
• Depending on the settlement cycle, these funds will be settled by either Tuesday (T+1) or Wednesday (T+2).
• Once settled, the funds will be available for withdrawal.